Analysts high on Tyson Foods

Three Wall Street analysts liked what Tyson Foods execs had to say last week, and approved of the solid first quarter performance — the best in company history. J.P. Morgan analyst Ken Goldman raised the 2014 earnings estimates for Tyson thanks in part to healthy near-term fundamentals.

Goldman lifted his 2014 earnings estimate to $2.84 from $2.76 a share in light of Tyson management “forging a first-class protein company.”

Kenneth Zaslow at BMO Capital Markets was equally optimistic on Tyson’s earnings prospects in the coming years, but was not as specific on what the earnings figures will be in 2014 and 2015.

Given Tyson management’s projected 2014 earnings to reach at least $2.78 a share, Zaslow said that he expects the company to top expectations by between 10% and 15% in both 2014 and 2015.

Farha Aslam, analyst with Stephens Inc. raised her estimates for fiscal 2014 to $2.90 a share from $2.82.

Aslam applauded Tyson’s ability to manage its four business units to generate consistent growth along with its strong cash flow and the ability to make future acquisitions.

She expects strong profitability in poultry and higher expectations for beef this year and predicts higher pork earnings and prepared foods contributions will lift 2015 earnings.

Shares of Tyson Foods traded at $36.19, up 17 cents on Tuesday morning (Feb. 4). The shares retreated Monday, after setting a new 52-week high of $38.25 following Friday’s earnings.